Alternative Power Solution Limited v Central Electricity Board and another

Alternative Power Solution Limited v Central Electricity Board and another

The fraud exception was not satisfied as there was no clear evidence APS acted fraudulently or that Standard Bank was aware of fraud; contractual disputes and alleged breaches were matters for arbitration and did not justify an injunction against payment under the letter of credit.

Parties
Appellant: Alternative Power Solution Limited; Respondent: Central Electricity Board; Respondent: Standard Bank
Jurisdiction
England and Wales
Judgment Date
09 September 2014
Procedural Posture
Appeal / Judgment of Privy Council
Outcome
Appeal allowed
Legal Topics
Letters of Credit, Fraud Exception, Injunctions, International Trade, Arbitration
Banking Law Commercial Law Contract Law Letters of Credit Fraud Exception Injunctions International Trade Arbitration

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Alternative Power Solution Limited

Appellant

Central Electricity Board

Respondent

Standard Bank

Respondent

Procedural Posture

Appeal / Judgment of Privy Council

Legal Issues

  1. 1 Whether the fraud exception to payment under a letter of credit was satisfied
  2. 2 Whether the bank was aware of alleged fraud by the beneficiary
  3. 3 Whether the balance of convenience justified an interlocutory injunction

Ratio Decidendi

The fraud exception was not satisfied as there was no clear evidence APS acted fraudulently or that Standard Bank was aware of fraud; contractual disputes and alleged breaches were matters for arbitration and did not justify an injunction against payment under the letter of credit.

Court Disposition

Appeal allowed

Orders

  • CEB to pay costs of APS and Standard Bank before the Board and in the courts below
  • Submissions on costs to be filed within 28 days; responses within 14 days thereafter